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Former insurance agent that worked for a brokerage here…
The short answer, if insurance company A has a monthly PPO plan of $100 and an agent signs someone up to that plan the agent then gets 4% of it as commission so $4, however since he’s independent he can sell insurance plans for insurance company B and C etc also, (not just insurance company A) so if the person they’re selling to doesn’t like the PPO of Insurance company A the independent agent can look at other PPO plans of other insurance companies, HOWEVER if the agent was ONLY contracted to work under a brokerage then the brokerage gets a larger chunk of that commission,
I had a full run down of how the entire process would go from getting into practice to making money but felt it was too long,
To make it even more simplified, independent broker makes his own leads of potential signees, he signs them up and his commission is a percentage, the percentage is based on the plan and state,
Fun fact tho, you can make a year salary off of one sale if you’re selling life insurance to rich people
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The brokerage I was working for was a bad one, really bad and very shady one, they also broke laws and I was not going to be facing 10+ years and hundreds of thousands of dollars in fines for them especially considering they paid out not even a fraction of the total commission,
Company experience is best imo so you get to learn how to really do it with guidance cause brokerages typically have trainers to help you out,
Also yes there’s great money in it as apart of a brokerage there’s waaayyyyy more in it if you own a brokerage or at least go independent, the owners of the brokerage I was working for was makiing MILLIONS a year just off of one agent, there was dozens of us
L
They take a commission. They're a middle man in the system, they provide convenience and time as their service, in exchange for you paying more money for the insurance.
The client doesn’t pay more. The commision comes from the insurance company
They start by practicing subject-verb agreement.
They get a commission for referring the customer. And additional smaller commissions for ongoing renewals.
They are paid a commission by the companies whose products they sell for enrolling customers.